BOOM: US COMPANIES ADD MORE JOBS THAN EXPECTED

REUTERS/Charles Platiau

The June ADP employment survey results are out.

Private U.S. companies added 188,000 jobs in June, up from 134,000 in May.

This was better than the 150,000 economists were looking for.

"The job market continues to gracefully navigate through the strongly blowing fiscal headwinds. Health Care Reform does not appear to be significantly hampering job growth, at least not so far," said Moody's Mark Zandi. "Job gains are broad based across industries and businesses of all sizes."

Here's an industry breakdown via ADP:

ADP

Here's a historical look at the ADP numbers:

ADP

Some economists believe this is a useful predictor of the official jobs report, which will be published by the Bureau of Labor Statistics on Friday at 8:30 a.m. ET.

"Ignore ADP at your own peril," said Deutsche Bank's Joe LaVorgna.

"The reliability of the ADP measure may have improved since Moody’s replaced Macroeconomic Advisers as the compiler of the data late last year, but that still leaves plenty of room for error," said High Frequency Economics' Jim O'Sullivan.

"Last month’s miss was 40K, with the ADP series up 135K and private payrolls in the BLS report up 175K; total payrolls, including a 10K decline in the government sector, rose 165K. In the eight months since Moody’s took over, the ADP misses have ranged from -63K, with payrolls weaker than ADP, to +57K, with payrolls stronger than ADP. The miss without regard to sign has averaged 42K in the eight months since the change, down from 53K in the previous eight months."

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